When Wall Street Almost Collapsed

We're now one year out from the biggest near-miss in Wall Street history. One year later, the pain persists for those of us who innocently watched our dreams and hopes for the future being snuffed out.

This week Fortune Magazine is taking its readers inside the minds of many of the pivotal players in that drama leading up to the forced bankruptcy of Lehman Brothers. The universal question was: Would panic prevail?

The fall of Lehman Brothers on Sept. 15, 2008, was the canary in the mineshaft for me. At that moment we were still working diligently on the premise that SwissRe, the organization committed to fund Legacy Now would survive. They gave assurances they had not invested in sub-prime mortgage paper, and were committed to the funding.

On December 1st, however, The Wall Street Journal published an article disclosing SwissRe's precarious financial condition and it imploded because of its off-balance sheet treatment of "credit default swaps" (CDSs), essentially insurance for companies invested in sub-prime paper. We had already watched the Royal Bank of Scotland fail, along with UBS because of their ingestion of sub-prime mortgage paper. SwissRe was to us a bright shining light of hope. However, they were compelled to fully disclose its involvement and not long afterward were nationalized by the Swiss government to save it. Overnight, SwissRe went from being the number one re-insurer in the world to number nine and Legacy Now died with it.

Then it was back to the securitization dance with RBS for one final spin around the floor with surviving players now two levels higher than our previous involvement with them. Hopeful signals were sent in the early part of this year persisting into May. RBS had also been nationalized to save it from collapse, but the Legacy Now project failed yet again not because of the soundness of the investment it posited but purely on arbitrary nationalistic issues -- the government-owned RBS simply didn't want to do business with America on CDOs of any stripe.

One year after that terrifying Monday in September, the people who struggled to cope with the financial crisis share what they were thinking as chaos broke out. Be sure to scroll through all the comments -- it's pretty chilling stuff.

Time Magazine this week is also suggesting a "top 25" list of people to blame for the current world financial crisis we face. Again, scroll through the list of Time's top 25. If you're in to needing to assign blame, there is plenty of fodder here to go around, and it will at least help you focus your anger and frustration if retribution is your wont.

Personally, marking this first anniversary is a painful reminder of how close we came to funding Legacy Now, and the bitter irony now looking back is that all the potential for good it might have offered seemingly died on that day a year ago. Hope persists, but it's on life support now.

A year later, the question remains: Is there a future for securitization of healthy, well-researched and actuarily-sound uncorrelated assets offering a safe and predictable investment return?

The silence is deafening.

National Debt Ceiling Rising to $13 TRILLION

Lost in the din of the national debate over health care reform comes news today that the Obama administration is asking for the Senate to go along with the House's already-granted approval to increase the national debt level to $13 Trillion!

The debt ceiling has already been raised three times in the last two years. And this is before we begin to absorb the cost of a nationalized health care program (the Congressional Budget Office estimate is as high as $1.5 Trillion).

The duplicity of the economic forecasts attempting to describe the impact of the inexorable escalation in debt levels is stunning. Reduced to their essence, there isn't a commentary I've read recently that doesn't contain two contradictory elements: 1) Raising the debt level must be done and is essential to keep the government running; and 2) continually raising the debt level is unsustainable as a long-term strategy.

This political double-speak is illustrated perfectly in the words of President Obama. When President Bush was in the White House, he was the junior Senator from Illinois in 2006. Senator Barack Obama was outraged at the thought of increasing the debt level. He rose on the Senate floor and indignantly decried: “Washington is shifting the burden of bad choices today onto the backs of our children and grandchildren. America has a debt problem and a failure of leadership.”

He joined en mass with his Democrat colleagues in protest and voted against the increase in debt levels then. Despite Democrats' outrage, the Republicans had the votes and the debt level was increased. Now the roles are reversed, and the outcome is likely not to change much.

I have come to the painful conclusion that there is really very little difference anymore between a Republican and a Democrat. The need to sustain the status quo is all either party seems concerned about. It's really just a matter of acquiring and holding on to power, then sustaining one's political position for as long as possible.

When the outrage of the citizenry is sufficient, then change comes.

Now, it seems, another change is in the offing in the mid-term Congressional elections looming in 2010. Every two years something magical happens under our form of government. One-third of the Senate is up for election and all 435 House seats are at stake. What Americans are slowly coming to realize is that they really do have the power at the voting booth to alter what always appears to be a default future over which they have little control. However, they are the only true agents of change that will be effective.

When he ran for president in 2008, Barack Obama promised "change we can believe in." There were 52% of Americans who believed him. One might argue now that wasn't exactly the change we were looking for. Knowing that two years is a painfully short window through which to push change, we have seen a breath-taking change agent at work. The speed with which the legislative agenda of Barack Obama has been moving through the House and Senate is unprecedented.

But, remember, it's only a two-year window.

The genius of the Constitution, it seems to me, is that the extreme swings in the political pendulum can be adjusted by the will of the governed, but only if they're up to it. Suddenly this summer people have been heard to shout out at their elected officials, "You work for us, we don't work for you!" Stunning. Amazing. Shocking. And exactly the way the framers of the Constitution envisioned it.

The polarizing debate over health care reform in recent months has framed the Constitutional genius in a new light for some. They've seen an illustration of what is possible. Town hall meetings have demonstrated just how volatile the inflamed electorate can become when their security is threatened.

Nobody believes in the inspired origins of the Constitution more ardently than the members of The Church of Jesus Christ of Latter-day Saints.

I was reading this morning in D&C 101, a revelation given December 16, 1833, to Joseph Smith when he was living in Kirtland, Ohio. Great persecution was being heaped on the saints living in Missouri. Mobs with blackened faces were driving them from their homes in Jackson County, and persecution followed them incessantly into Van Buren County and Clay County. Threats of death against individuals in the Church were a daily occurrence. Members of the Church had lost household furniture, clothing, livestock, crops and other personal property to the mobs. Their homes were left in burning rubble behind them. Despite that backdrop, when all hope seemed lost, the Lord reassured the young Prophet Joseph:

Verily I say unto you, concerning your brethren who have been afflicted, and persecuted, and cast out from the land of their inheritance—
I, the Lord, have suffered the affliction to come upon them, wherewith they have been afflicted, in consequence of their transgressions;
Yet I will own them, and they shall be mine in that day when I shall come to make up my jewels.
Therefore, they must needs be chastened and tried, even as Abraham, who was commanded to offer up his only son.
For all those who will not endure chastening, but deny me, cannot be sanctified.
Behold, I say unto you, there were jarrings, and contentions, and envyings, and strifes, and lustful and covetous desires among them; therefore by these things they polluted their inheritances.
They were slow to hearken unto the voice of the Lord their God; therefore, the Lord their God is slow to hearken unto their prayers, to answer them in the day of their trouble.
In the day of their peace they esteemed lightly my counsel; but, in the day of their trouble, of necessity they feel after me.
Verily I say unto you, notwithstanding their sins, my bowels are filled with compassion towards them. I will not utterly cast them off; and in the day of wrath I will remember mercy.
I have sworn, and the decree hath gone forth by a former commandment which I have given unto you, that I would let fall the sword of mine indignation in behalf of my people; and even as I have said, it shall come to pass.
Mine indignation is soon to be poured out without measure upon all nations; and this will I do when the cup of their iniquity is full.
And in that day all who are found upon the watch-tower, or in other words, all mine Israel, shall be saved.
And they that have been scattered shall be gathered.
And all they who have mourned shall be comforted.
And all they who have given their lives for my name shall be crowned.
Therefore, let your hearts be comforted concerning Zion; for all flesh is in mine hands; be still and know that I am God.
Zion shall not be moved out of her place, notwithstanding her children are scattered.
They that remain, and are pure in heart, shall return, and come to their inheritances, they and their children, with songs of everlasting joy, to build up the waste places of Zion —
And all these things that the prophets might be fulfilled. . .
And now, I will show unto you a parable, that you may know my will concerning the redemption of Zion.
A certain nobleman had a spot of land, very choice; and he said unto his servants: Go ye unto my vineyard, even upon this very choice piece of land, and plant twelve olive-trees;
And set watchmen round about them, and build a tower, that one may overlook the land round about, to be a watchman upon the tower, that mine olive-trees may not be broken down when the enemy shall come to spoil and take upon themselves the fruit of my vineyard.
Now, the servants of the nobleman went and did as their lord commanded them, and planted the olive-trees, and built a hedge round about, and set watchmen, and began to build a tower.

NOTE: [This reference in the parable to "a tower" is being used as a symbol for the temple designated for Independence, Jackson County, Missouri. I went looking for a picture of an ancient watchtower to illustrate today's blog, and found this accompanying picture of the Desert Watchtower with a view of the Grand Canyon and surrounding countryside for hundreds of miles in every direction. Built in 1932, it is the perfect symbol to suggest the need for us to see the enemy conspiring against the saints who are seeking to establish Zion in these last days].

And while they were yet laying the foundation thereof, they began to say among themselves: And what need hath my lord of this tower?
And consulted for a long time, saying among themselves: What need hath my lord of this tower, seeing this is a time of peace?
Might not this money be given to the exchangers? For there is no need of these things.
And while they were at variance one with another they became very slothful, and they hearkened not unto the commandments of their lord.
And the enemy came by night, and broke down the hedge; and the servants of the nobleman arose and were affrighted, and fled; and the enemy destroyed their works, and broke down the olive-trees.
Now, behold, the nobleman, the lord of the vineyard, called upon his servants, and said unto them, Why! what is the cause of this great evil?
Ought ye not to have done even as I commanded you, and — after ye had planted the vineyard, and built the hedge round about, and set watchmen upon the walls thereof — built the tower also, and set a watchman upon the tower, and watched for my vineyard, and not have fallen asleep, lest the enemy should come upon you?
And behold, the watchman upon the tower would have seen the enemy while he was yet afar off; and then ye could have made ready and kept the enemy from breaking down the hedge thereof, and saved my vineyard from the hands of the destroyer.
And the lord of the vineyard said unto one of his servants: Go and gather together the residue of my servants, and take all the strength of mine house, which are my warriors, my young men, and they that are of middle age also among all my servants, who are the strength of mine house, save those only whom I have appointed to tarry;
And go ye straightway unto the land of my vineyard, and redeem my vineyard; for it is mine; I have bought it with money.
Therefore, get ye straightway unto my land; break down the walls of mine enemies; throw down their tower, and scatter their watchmen.
And inasmuch as they gather together against you, avenge me of mine enemies, that by and by I may come with the residue of mine house and possess the land.
And the servant said unto his lord: When shall these things be?
And he said unto his servant: When I will; go ye straightway, and do all things whatsoever I have commanded you;
And this shall be my seal and blessing upon you — a faithful and wise steward in the midst of mine house, a ruler in my kingdom.
And his servant went straightway, and did all things whatsoever his lord commanded him; and after many days all things were fulfilled.
Again, verily I say unto you, I will show unto you wisdom in me concerning all the churches, inasmuch as they are willing to be guided in a right and proper way for their salvation —
That the work of the gathering together of my saints may continue, that I may build them up unto my name upon holy places; for the time of harvest is come, and my word must needs be fulfilled.
Therefore, I must gather together my people, according to the parable of the wheat and the tares, that the wheat may be secured in the garners to possess eternal life, and be crowned with celestial glory, when I shall come in the kingdom of my Father to reward every man according as his work shall be;
While the tares shall be bound in bundles, and their bands made strong, that they may be burned with unquenchable fire.
Therefore, a commandment I give unto all the churches, that they shall continue to gather together unto the places which I have appointed.
Nevertheless, as I have said unto you in a former commandment, let not your gathering be in haste, nor by flight; but let all things be prepared before you.
And in order that all things be prepared before you, observe the commandment which I have given concerning these things—
Which saith, or teacheth, to purchase all the lands with money, which can be purchased for money, in the region round about the land which I have appointed to be the land of Zion, for the beginning of the gathering of my saints;
All the land which can be purchased in Jackson county, and the counties round about, and leave the residue in mine hand.
Now, verily I say unto you, let all the churches gather together all their moneys; let these things be done in their time, but not in haste; and observe to have all things prepared before you.
And let honorable men be appointed, even wise men, and send them to purchase these lands.
And the churches in the eastern countries, when they are built up, if they will hearken unto this counsel they may buy lands and gather together upon them; and in this way they may establish Zion.
There is even now already in store sufficient, yea, even an abundance, to redeem Zion, and establish her waste places, no more to be thrown down, were the churches, who call themselves after my name, willing to hearken to my voice.
And again I say unto you, those who have been scattered by their enemies, it is my will that they should continue to importune for redress, and redemption, by the hands of those who are placed as rulers and are in authority over you —
According to the laws and constitution of the people, which I have suffered to be established, and should be maintained for the rights and protection of all flesh, according to just and holy principles;
That every man may act in doctrine and principle pertaining to futurity, according to the moral agency which I have given unto him, that every man may be accountable for his own sins in the day of judgment.
Therefore, it is not right that any man should be in bondage one to another.
And for this purpose have I established the Constitution of this land, by the hands of wise men whom I raised up unto this very purpose, and redeemed the land by the shedding of blood. [America was obtained in the Revolutionary War through the shedding of blood in a most remarkable outcome -- nobody predicted victory over the mighty armies of Great Britain, yet victory came.]
Now, unto what shall I liken the children of Zion? I will liken them unto the parable of the woman and the unjust judge, for men ought always to pray and not to faint, which saith—
There was in a city a judge which feared not God, neither regarded man.
And there was a widow in that city, and she came unto him, saying: Avenge me of mine adversary.
And he would not for a while, but afterward he said within himself: Though I fear not God, nor regard man, yet because this widow troubleth me I will avenge her, lest by her continual coming she weary me.
Thus will I liken the children of Zion.
Let them importune at the feet of the judge;
And if he heed them not, let them importune at the feet of the governor;
And if the governor heed them not, let them importune at the feet of the president;
And if the president heed them not, then will the Lord arise and come forth out of his hiding place, and in his fury vex the nation;
And in his hot displeasure, and in his fierce anger, in his time, will cut off those wicked, unfaithful, and unjust stewards, and appoint them their portion among hypocrites, and unbelievers;
Even in outer darkness, where there is weeping, and wailing, and gnashing of teeth.
Pray ye, therefore, that their ears may be opened unto your cries, that I may be merciful unto them, that these things may not come upon them.
What I have said unto you must needs be, that all men may be left without excuse;
That wise men and rulers may hear and know that which they have never considered;
That I may proceed to bring to pass my act, my strange act, and perform my work, my strange work, that men may discern between the righteous and the wicked, saith your God.
And again, I say unto you, it is contrary to my commandment and my will that my servant Sidney Gilbert should sell my storehouse, which I have appointed unto my people, into the hands of mine enemies.
Let not that which I have appointed be polluted by mine enemies, by the consent of those who call themselves after my name;
For this is a very sore and grievous sin against me, and against my people, in consequence of those things which I have decreed and which are soon to befall the nations.
Therefore, it is my will that my people should claim, and hold claim upon that which I have appointed unto them, though they should not be permitted to dwell thereon.
Nevertheless, I do not say they shall not dwell thereon; for inasmuch as they bring forth fruit and works meet for my kingdom they shall dwell thereon.
They shall build, and another shall not inherit it; they shall plant vineyards, and they shall eat the fruit thereof. Even so. Amen. (D&C 101:1-19; 43-101, emphasis added).

There is a profound and scriptural reason why the living prophets among us do not seem to be concerned about the political winds that blow. No matter what happens politically in this country as it is tossed to and fro in the mighty winds of adversity, there is peace in knowing the promises of the Lord -- come what may.

As I write this post to the blog, President Obama is addressing school children amidst withering criticism from the right that he is trying to somehow brainwash them into his socialistic agenda (a stupid notion), and tomorrow he will address the Congress in a joint session presumably to ram home his health care program (little more than great political theater since he already has the votes in his pocket to do whatever he desires).

Against the backdrop this political stage, remember no matter what, Zion will be redeemed "when I will." In the meantime, "go ye straightway, and do all things whatsoever I have commanded you." That injunction has never changed, and neither has the commitment of our leaders to building enough temples throughout the world to fulfill their mandate as true watchmen on the towers of Zion.

And the national debt and the political debate continue to escalate.

The Seventy

At Education Week recently in Provo at the BYU campus, President Boyd K. Packer delivered the keynote address. He spoke of the fledgling finches nesting in the ivy growing on his home and the snakes that invaded their serenity. As part of his sermon, he talked about the Seventy in today's Church who have been deployed around the world to defend against the inroads of the adversary. He said in part:

"The Lord called 70 men and sent them forth. He gave them authority to teach and instruct and combat the forces of evil. These Seventies returned, and the New Testament says they marveled 'with joy, saying, Lord, even the devils are subject unto us through thy name' (Luke 10:17).

"And the Lord replied, 'Behold, I give unto you power to tread on serpents and scorpions, and over all the power of the enemy: and nothing shall by any means hurt you' (Luke 10:19). We have the names of these Seventies who were called at the time of Christ. Stephen, the martyr, was one of the Seventy, and Nicanor, who also died when Stephen was martyred, was a Seventy. (See John M’Clintock and James Strong, Cyclopaedia of Biblical, Theological, and Ecclesiastical Literature [New York: Harper and Brothers., 1880], 9:600).

"Much has been done to prepare the Church and its members to resist the forces of evil. We live in a day of revealed direction. I have been witness as a General Authority to changes that were revealed from time to time in order that the Lord might better edify His children.

"For example, when I first came into these circles of the Church there were seven Presidents of the Seventy. They were the First Council of Seventy, the seven of them, and other seventies were in stakes. That pattern of organization served its purpose for a time. As the Church began to grow and move abroad, more Quorums of Seventy were required to minister to branches and wards and stakes and missions across the globe. And much has been changed over the years.

"The seventies in the stake quorums have been discontinued. Instead, there are now eight Quorums of Seventy with 85 General Authority Seventies and 218 Area Seventies assigned to the work. Each of the Seventy has had conferred upon him the apostolic authority.

"The role of the Seventy is to instruct and edify the leaders and members of the Church and to build up and strengthen fathers and mothers in their sacred role as parents and leaders in the home. They strengthen the parents, including single mothers who need and deserve the watch-care that they can receive.

"The Seventy go where the Twelve, limited by their number, cannot. Seventies are scattered across the world, as they were in the early days of the Church. When you look at the map of the world and where they are, it is dotted with the Seventies who are now serving.

"One who holds the office of Apostle, Seventy, patriarch, high priest, or elder carries the consummate priesthood authority held on the earth — the Melchizedek Priesthood or 'the priesthood . . . after the holiest order of God' (D&C 84:18)."

My life was blessed as recently as yesterday by an impromptu visit with one of the Seventy, Elder Lee Curtis, who frequents the Woodland Ward on rare occasions when his schedule permits him to make a visit to his family cabin nearby.

He slipped in quietly and sat beside me on the back row of the chapel during Priesthood meeting. The group instruction for the high priests ended twenty minutes early (a rare happening), and we sat and visited while we waited for Sunday School to start. Lee served as a stake president and mission president prior to his current calling. His father, LeGrand Curtis, was also a Seventy.

We discussed the historic priesthood leadership meeting and subsequent special stake conference last Sunday, of which he was a part (see my earlier post, "A New Era in Church Leadership"). He affirmed that it had been a delightful experience and that he had been assigned by Elder Scott to accompany him to a special stake conference meeting on Sunday following the priesthood leadership meeting on Saturday. He also commented that the leadership meeting went four hours in duration. He said the purpose was to provide the Apostles with closer contact with the priesthood leaders, as Bishop Burton explained.

Our conversation took an unexpected turn when he said, "My sense of your Grandfather was that he was fearless. He seemed fearless because of his great faith and the assurance he had that he was in the Lord's hands." I confirmed that assessment, because that was always my impression of who he was too.

He said he was a missionary in Italy in 1972, when President Lee and Elder Hinckley were on their way to the Holy Land, an historic visit making President Lee the first living Prophet to visit the Holy Land while he was serving as President of the Church. In Italy they held a missionary conference of which Elder Curtis was a part. He said it was inspiring, that he was in a place and time when he was eager to learn, and that President Lee had always been an inspiration to him.

It caused me to reflect on my own missionary experience with then-Elder Lee, who had visited me with Aunt Joan in the North British Mission in 1967. I shared those remembrances with him as we visited together. I had been out about nine months and was serving in a particularly challenging assignment training a new missionary in a new area, West Hartlepool, near the North Sea. I went searching in my missionary journal for my entries about it this morning. This is what I found:

"November 14, 1967

"We began our day today with prayer in Grandfather's and Aunt Joan's room [in the mission home at Rossett Green, Harrogate, Yorkshire] -- just the three of us -- and what a thrill to be able to talk to the Lord with them. When we went down for breakfast, President Robison called on me to pray, but after kneeling with Grandfather everything I said seemed at best anticlimactic.

"We left Harrogate early and travelled to Sunderland for the zone conference at which Grandfather spoke. I've heard Grandfather speak many sermons before, but this was the first sermon I've ever heard him deliver, urging each of us to seek for the spirit of the Lord, and then to have the courage to follow the promptings we receive.

"The spirit descended upon me, and carried me into the spiritual heights I never dreamed of attaining. The floodgates opened wide the minute Aunt Joan began speaking and remained open all through Grandfather's remarks and the closing song. All I could do was sob silently -- not because I was homesick in any way, just because I now understand the gospel, and Grandfather's address was so personal even though there were 60 other missionaries present. I felt as though he must have been speaking to Elder David B. Goates exclusively, because I needed to hear every word he uttered. I've determined to live that sermon every day of my mission and my life thereafter.

"Following the conference, we went to lunch with President and Sister Oates of the Sunderland Stake, and then Elder Maughn (one of the assistants) and I checked in to the Seaburn Hotel with Aunt Joan and Grandfather. We chatted in their room all afternoon. Elder Maughn knew all the questions, and he plied Grandfather with what seemed like doctrinal questions I'd never even thought of before. The truth is, I don't even know the questions yet, but Elder Maughn does. Grandfather patiently answered every one, turning the pages of his scriptures with ease and familiarity. I longed to have that kind of scriptural knowledge. The goal was implanted within me -- become a scriptural scholar like Grandfather.

"At one point, Elder Maughn asked if Grandfather ever had any doubts. He arose from the edge of the bed, walked to the window and looked out on the beach drenched in the brilliant sunlight below that followed the earlier rain. Even though it was cold outside, there were sun worshipers on the beach. He said something I will never forget, 'Of course I have doubts,' he said slowly, 'we all have doubts from time to time, but when the dark clouds have hovered overhead and the winds of adversity have blown hard and the rains have descended, I have always tried to remember what it's like when the sun is shining as it is today.'

"Then we ate dinner and let Aunt Joan and Grandfather retire early. They both seemed very tired, especially Aunt Joan. Elder Maughn and I went to our room and talked even more about the gospel and a myriad of other subjects. My heart is so full that I kept him up until about 1:00 in the morning pouring out my soul. I've never had a more spiritual 24 hours in my life than today -- it's been wonderful!

"November 15, 1967

"We arose early this morning and had a great study class together for about two hours, then as the sun arose we went out and walked along the beach while we waited for Grandfather and Aunt Joan to come down for breakfast. Elder Maughn has a choice spirit, and I've certainly enjoyed being with him these last three days, as well as the time we spent together in Liverpool [he was my zone leader there]. We had a relaxed breakfast together, then met President Oates who took us into downtown Sunderland so we could pick up our car at the garage. The brakes failed in the parking lot at the stake center the day before. When I put the car in reverse to back out of the parking stall and applied the brakes there was nothing -- the car had coasted across the lot and was stopped by the curb on the other side."

[I was told by the mechanic when we picked up the car that he had surmised I must have driven all the way from Harrogate to Sunderland with the emergency brake set and the brake linings were completely gone. Of course, my story -- and I'm sticking to it even today -- is that I was unfamiliar with the controls on the English Ford Vauxhall being the reverse of what I am used to and I overlooked releasing the emergency brake. Until her dying day, Aunt Joan thought it was such a miracle that we had been protected with safety on that trip through narrow winding roads and rain-slicked highways that she rarely spoke of it -- it was such a sacred deliverance in her mind.]

"We then did a little shopping for Aunt Joan, and returned to West Hartlepool in the early afternoon. I would have liked to show them around 'our town' here, but all we had time for was a quick tour of the chapel which had recently been completed and dedicated. They stopped by our digs and it was a real treat for Mr. and Mrs. Armstrong to meet them. She kept calling Grandfather 'a canny lad,' the ultimate praise in her vernacular. I enjoyed it even more because they actually got to see where I live and how I live. They stayed for about a half hour, then we said goodbye for another 16 months I guess. I wasn't sorry to see them go, and I didn't wish for a minute to be going with them -- there's just too much to do now, and even less time now than the first time we said goodbye.

"This experience with Grandfather and Aunt Joan has done more to bolster my spirit and my confidence as a missionary than any other influence thus far, and it was evident to me tonight that a change has come over me. . ."

And so ended my encounter with an Apostle in the mission field. For the first time in my life I came to understand the power and the mantle that living Prophets among us are given. Prior to this experience I had been in the presence of the leaders of the Church on numerous occasions, but never before had I sensed as I did then the distinction between his being my Grandfather and his being an Apostle of the Lord Jesus Christ. Like Elder Curtis when he had his missionary experience with President Lee, I was in a place for the first time when I was open to the spirit and eager to learn.

My discussion with Elder Curtis continued yesterday, and we talked about our feelings about the plan of happiness and the redemptive power of the atonement. He said to me, "On my tombstone I want it to say, 'He believed in redemption.'" He went on to say that he is convinced that Heavenly Father really wants to save and exalt every single one of His children in the highest degree of the Celestial Kingdom, and that the requisite pieces of achieving that goal have all been put in place in the Restoration of the last days. I concurred completely with him.

We spoke of patriarchal blessings. He said it was his privilege as a stake president to occasionally review the blessings that were being given in his stake, a chance to lift up the corner of the page as it were and glimpse into the future through the inspiration of his stake patriarch. We both remarked that there is a glorious future for the youth of Zion in the last days, and that there is little to be gained by dwelling on all the negative conditions that surround us.

I was uplifted and spiritually blessed by this brief and intimate encounter with one of the Lord's chosen servants from among the Seventy. It was a gentle confirmation in a special and sacred way to me that my thoughts and my desires are aligned presently with the Lord and His servants. I pray that it may ever be so!

Providing in the Lord's Way

A year ago I was asked by the stake presidency to prepare an outline for the monthly high council speaking Sunday. The topic: "Providing in the Lord's Way." All around the Church there has been an emphasis as the economic realities of the times we are living in have become more acute.

I am routinely amused by Robert Kirby's articles in the Salt Lake Tribune. His wit always gives welcome relief from taking ourselves too seriously, even in hard times. His column yesterday about serving in the Bishop's Storehouse, is particularly noteworthy. Brother Kirby, once a recipient when he struggled to feed his own family is now serving to lighten the load of others, and he recounts his experience with customary humor and goodwill.

Living providently has never been a more timely topic than it is right now. We have children who have mastered this art from their mother, who manages to stretch dollars farther than any woman I know. We have had few dollars even to stretch for many years, yet she has helped us survive temporally in a miraculous way. While homemaking skills are vanishing, these present circumstances will no doubt re-enthrone bread baking, cooking, sewing, home canning and bottling like no amount of encouragement and classes on the subjects ever could. In our present circumstances as a family we have lived on food storage and never gone hungry. We long for the days to come when we will once again be in a better position to help and encourage others as we have been helped. The wheel turns in life -- sometimes we are at the top, and one more roll puts us on the bottom. Life is learning to live comfortably in either circumstance, I believe.

The genius of the Welfare Plan as originally conceived in the Church in the aftermath of the Great Depression was to become independent agents, free from government intrusions into our privacy, our agency and our dependency. The principles are timeless, and they are timely.

The title "Providing in the Lord's Way" is taken from instruction for priesthood leaders in the Church’s downloadable publication of the same name.

Other useful downloadable pamphlets to study are: All is Safely Gathered In, and Family Finances. Since last year, all these links have been updated with new revisions to each pamphlet.

Everyone in the Church may now familiarize themselves thoroughly with the governing principles contained in Providing in the Lord’s Way, a current leaders’ guide to the Church’s Welfare Plan. For bishops, welfare needs of their members provide some of the knottiest problems they face. Often, confusion over the expectations of what is offered by the Church is the biggest problem. Educating ourselves collectively can help alleviate many of those communication problems up front and lower tensions between members and their leaders when needs arise to access the Bishop's Storehouse. It is also a useful study for those outside the Church to learn how it is the Mormons seem to do such a good job of taking care of each other.

Without belaboring the obvious, it should be abundantly clear we are now living in the time foretold by Moroni, when destructive secret combinations have gotten above us (see Ether 8:20-26). The two most egregious examples are the artificially manipulated price of crude oil and the sub-prime mortgage market meltdown.

The infant Church in March, 1832, was instructed to establish "the storehouse for the poor of my people," and was promised, "that through my providence, notwithstanding the tribulation which shall descend upon you, that the church may stand independent above all other creatures beneath the celestial world." (D&C 78: 3;14). My suggestions last year to our high council were:

· It’s time to “awake,” and prepare our families as the living prophets among us have been counseling ever since the days of the Great Depression.
· While interesting, the history of the Welfare Plan and the organization chart are not the preferred ingredients for your study. (Harold B. Lee is rolling over in his grave ;-)
· Rather, the wards in the Church today are filled with members who are struggling right now to make ends meet. As they consecrate themselves more deeply they will be blessed more – it is an eternal truth.
· Encourage each other to donate a generous fast offering for the benefit of those who are suffering. The concerns of stake presidencies worried about their stakes not being self-sustaining can be eradicated overnight by the increased fast offerings of the members.
· The underlying principle to emphasize is a call to greater consecration. (See scriptural references at the end).
· Correct principles will establish correct expectations in the hearts and minds of the members and underscore all Church programs.
· Consider teaching and re-emphasizing the principles of the fast day and the fast offerings.

Some key principles:

“The assistance given by the bishop is temporary and partial. Remember, Church assistance is designed to help people help themselves. The rehabilitation of members is the responsibility of the individual and the family, aided by the priesthood quorum and Relief Society. We are attempting to develop independence, not dependence. The bishop seeks to build integrity, self-respect, dignity, and soundness of character in each person assisted, leading to complete self-sufficiency.” (President Thomas S. Monson, Providing in the Lord’s Way, 20).

“The care of the poor is in the hands of bishops of wards — those Church officers who are nearest to the members and most intimately aware of their needs. As you well know, the funds to administer such aid come through a simple, divinely inspired program — what we call fast day and fast offerings. The millions of dollars which are needed for this purpose each year really cost no one anything. It is not a sacrifice for anyone to go without two meals a month and give the equivalent cost, and even more, to his or her bishop for the care of the needy.

“Think, my brethren, of what would happen if the principles of fast day and the fast offering were observed throughout the world. The hungry would be fed, the naked clothed, the homeless sheltered. Our burden of taxes would be lightened. The giver would not suffer but would be blessed by his small abstinence. A new measure of concern and unselfishness would grow in the hearts of people everywhere. Can anyone doubt the divine wisdom that created this program which has blessed the people of this Church as well as many who are not members of the Church?” (President Gordon B. Hinckley, Providing in the Lord’s Way, 22).

“No member of The Church of Jesus Christ of Latter-day Saints who has canned peas, topped beets, hauled hay, or shoveled coal in such a cause ever forgets or regrets the experience of helping provide for those in need. Devoted men and women help to operate this vast and inspired welfare program. In reality, the plan would never succeed on effort alone, for this program operates through faith after the way of the Lord.” (President Thomas S. Monson, Providing in the Lord’s Way, 28).

“Let’s also teach our obligations relative to the law of the fast. Each member should contribute a generous fast offering for the care of the poor and the needy. This offering should at least be the value of the two meals not eaten while fasting.

“’Sometimes we have been a bit penurious and figured that we had for breakfast one egg and that cost so many cents and then we give that to the Lord. I think that when we are affluent, as many of us are, that we ought to be very, very generous. . .

“’I think we should. . . give, instead of the amount saved by our two meals of fasting, perhaps much, much more — ten times more when we are in a position to do it.’ (President Spencer W. Kimball, CR, October 1974, 184).

“Fast offerings have long constituted the means from which the needs of the Lord’s poor have been provided. It has been, and now is, the desire and objective of the Church to obtain from fast offerings the necessary funds to meet the cash needs of the welfare program, and to obtain from welfare production projects the commodity needs. If we give a generous fast offering, we shall increase our own prosperity both spiritually and temporally.

“Brothers and sisters, with these thoughts in mind may I urge you to go forward in this great work. So much depends upon our willingness to make up our minds, collectively and individually, that present levels and performance are not acceptable, either to ourselves or the Lord." (President Spencer W. Kimball, “And the Lord Called His People Zion,” Ensign, August 1984, 2).

“The ward welfare committee. . . includes the priesthood executive committee plus the Relief Society presidency. This committee meets at least monthly, again under the direction of the bishop, to consider the temporal needs of ward members. Only the bishop may allocate welfare resources, but the committee helps care for the poor by planning and coordinating the use of ward resources, including the time, talents, skills, materials, and compassionate service of ward members. In this and in other committee and council meetings, delicate matters often are discussed, requiring strict confidentiality.” (Elder M. Russell Ballard, Providing in the Lord’s Way, 23).

“Parents, teach your children the joys of a proper fast. And how do you do that? The same as with any gospel principle — let them see you live it by your example. Then help them live the law of the fast themselves, little by little. They can fast and they can also pay a fast offering if they choose. As we teach our children to fast, it can give them the power to resist temptations along their life’s journey.

“How much should we pay in fast offerings? My brothers and sisters, the measure of our offering to bless the poor is a measure of our gratitude to our Heavenly Father. Will we, who have been blessed so abundantly, turn our backs on those who need our help? Paying a generous fast offering is a measure of our willingness to consecrate ourselves to relieve the suffering of others.

“Brother Marion G. Romney, who was the bishop of our ward when I was called on a mission and who later served as a member of the First Presidency of the Church, admonished: ‘Be liberal in your giving, that you yourselves may grow. Don’t give just for the benefit of the poor, but give for your own welfare. Give enough so that you can give yourself into the kingdom of God through consecrating of your means and your time.’” (Elder Joseph B. Wirthlin, “The Law of the Fast,” Ensign May 2001, 73).

Scriptures: Mosiah 4:26-27; 15-23; 2:41; D&C 70:14; 7-10; 78:3-7; 14; 82:14-20; 42:30-39; 51:2-19; 58:35-37; 49:20.

Les Goates (and the Internet turns 40)

My grandfather was Les Goates, famed sports editor, columnist and later editorial writer for the Deseret News. I was intrigued with this editorial appearing in the online edition of the paper this morning about the Internet turning 40 years old this week.

As I write this blog day by day, I am reminded of what his life was like compared to mine. Les Goates lived in Sugarhouse in the early days, and later when he owned a car in East Mill Creek. He was the consummate newspaper man. He would write his newspaper columns "Les Go by Les Goates" for years on an old standard typewriter by the light of his desk lamp, hunting and pecking through the keys as he went. I remember seeing that old typewriter long after he had quit using it, and it was a true artifact, an antique, a relic. Sometimes the lights burned late into the night and early morning hours as he labored over every word. He had two well-worn books (also antiques today) -- a dictionary and a thesaurus -- at his side. When he made a mistake there was no choice but to stop, roll the paper in the typewriter, erase it on all three copies separated by carbon paper, then reposition the paper and start again. Creating words in those days was tedious and laborious.

He would arise early each morning with his copy in his pocket, first to catch the trolley car in Sugarhouse, and later to drive his car into work. I remember him telling about reading and re-reading his copy on the trolley car with his red pencil in hand, pouring over every word, every punctuation mark, every nuance of the words on the page until he was satisfied that he had given it the life he intended. Words were important to him -- every word stood for something, and he made them all count.

In the early days he was his own typesetter. I'm sure he thought vast improvements had been made when a typesetter was assigned to him and he no longer had to set the type himself. One unfamiliar with the old newspaper presses would be totally unaware of how difficult the process was. He would take his typewritten page to the copy room and "pick" the tiny little lead letters one by one and assemble them on a board, using spacers between the words and paragraphs -- and all this was done backwards, right to left and upside down so that when it was printed it would lay out correctly! The typesetter had to be able to first recognize the letters in their backward and upside down configuration (see accompanying picture), pick them one letter at a time with a small set of tweezers, then place them correctly in the forme -- no small feat.

Then a proof sheet would be struck and more checking ensued to make certain all those upside down, backwards letters had found their correct home. Blocks and blocks of pages, articles, pictures and advertisements were assembled, ordered and finally printed in the afternoon hard copy edition of the daily newspaper. It was hard work, and as soon as one daily edition was completed, Les Goates was back at it in his fertile mind thinking about what would come next for tomorrow's edition. Day in, day out, that was his life for well over forty years! Imagine the complexity of having to attend all those sporting events (usually at night), then write the story!

During the letterpress era, moveable type was composited by hand for each page. Cast metal sorts were composited into words and lines of text and tightly bound together to make up a page image called a forme, with all letter faces exactly the same height to form an even surface of type. The forme was mounted in a press, inked, and an impression made on paper.

I have only vague memories in my formative years of my grandfather's life. He routinely took me to the Bees baseball games back in those days when they were in the old Pacific Coast League, and even made all his grandchildren stockholders in the old organization. Last night as I watched this year's annual installment of the Utah vs. Utah State football game (Utah 35, Utah State 17), I remembered it was traditionally played on Thanksgiving Day. We always attended that game religiously as a family and Thanksgiving dinner was delayed until after the game was over. What wonderful memories! He loved sports and writing. His love of both was deeply imprinted and imbedded in the DNA of most of his posterity.

Today as my fingers breeze over the keyboard of my computer and I cut and paste from electronic files that I have been writing for my own enjoyment as an avocation for years, I can hardly believe that Les Goates did what he did. The ease with which I create words today is stunning by comparison. I publish on my desktop at will, and it is instantly flashed over the Internet to anyone who has a search engine and is lucky enough to stumble over my blog.

I'll bet Les Goates is looking down on all this progress with just a little bit of envy for what I'm doing and how I'm doing it. He should have been so lucky!